Crypto Industry News:

Cryptocurrency exchanges operating illegally in China are facing a new threat after the central bank has announced that it will take new steps to enforce the trade ban.

In a published statement, the People's Bank of China (PBoC) warned that it was taking action against entities allegedly involved in trading cryptocurrencies, such as Bitcoin. He added that this move is a response to the increase in commercial activity after China's public support of Blockchain technology.

Committing himself to keep his promise to ban the trade, PBoC has sworn to "get rid" of any activity detected under its jurisdiction.

"Once detected, it will be removed immediately and will be prevented from rebooting early," reads the statement in a translation.

Currently, many rumors talk about repression in Chinese outlets of legitimate cryptocurrency companies. Yesterday the attention focused on alleged police raids on Binance and Bithumb offices, which was later denied.

Bitcoin collapsed when news seemed to shake the markets, falling almost 10% and stopping at around $ 7,000.

Technical Market Overview:

The BTC/USD pair has made another lower low at the level of $6,488 and the downtrend continues. The last Elliott wave count has been invalidated due to the wave 1 and wave 2 overlaps. The market continues the move to the south and there is no sign of any reversal yet. The next target for bears is seen at the level of $6,345 and $6,000.

Weekly Pivot Points:

WR3 - $9,581

WR2 - $9,033

WR1 - $7,830

Weekly Pivot - $7,282

WS1 - $6,055

WS2 - $5,531

WS3 - $4,254

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.